Archive · 30 Oct 2025
NHAI Steeply Reduces Toll Collection Costs by 43.5%
Imagine NHAI is like a big company that owns roads and collects money from people who use them.
Collecting this money costs them money too.
NHAI found ways to make collecting this money much cheaper.
They did this by making sure their contracts for toll collection were for longer periods, like a year, instead of very short periods like three months.
They also watched the contracts more closely and stopped automatically extending them.
Because of these changes, they saved over 2,000 crore rupees in just one year!
This means less of the money collected from drivers goes towards paying for the collection process, and more goes to NHAI to maintain the roads.
They also talked to the people who collect the tolls to make sure everyone was happy and participating in bidding for new contracts.
NHAI's toll collection costs dropped by Rs 2,062 crore (43.5%) in 2024-25.
This reduction was achieved through timely bidding and favoring longer, one-year contracts over short-term three-month ones.
The cost of toll collection decreased from 17.27% to 9.27% of gross receipts in the same period.
Measures included close monitoring of contracts, minimizing premature terminations, and introducing a 'Windfall Gain' clause.
NHAI also improved contractor confidence by timely releasing performance security and engaging with the 'All India User Fee Collection Federation'.
- Who
- National Highways Authority of India (NHAI) and toll collection agencies
- What
- Reduced toll collection costs significantly by implementing new bidding strategies and contract management.
- When
- Primarily in the 2024-25 financial year, with comparisons to 2023-24.
- Where
- Across NHAI toll plazas in India.
- Why
- To improve efficiency and reduce the financial burden associated with toll collection.
- Reduction in Toll Collection Cost (2024-25)
- Rs 2,062 crore
- Total Toll Collection Cost (2024-25)
- Rs 2,674 crore
- Total Toll Collection Cost (2023-24)
- Rs 4,736 crore
- Cost of Toll Collection as % of Gross Receipts (2024-25)
- 9.27%
- Cost of Toll Collection as % of Gross Receipts (2023-24)
- 17.27%
- Total Toll Fee Collected (2024-25)
- Rs 28,823 crore
- Amount Remitted to NHAI (2024-25)
- Rs 26,149 crore